Economies of Scale and Increasing Returns: An Application to Mexican Microenterprises

The paper discusses the conditions for microenterprises to remain in the market. The analysis demonstrates that microenterprises facing tight constraints may remain in the market only if they are capable of achieving increasing returns and economies of scale that shift down their average cost curves towards more competitive levels. This finding is supported by the analysis of a sample of 95 Mexican microenterprises, and by the estimation of a production optimization model.

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Year of publication:	2010
Authors:	Angulo, Natanael Ramírez ; Lagarda, Alejandro Mungaray ; Urquidy, Martín Ramírez ; Flores, Michelle Texis
Published in:	Economía Mexicana NUEVA ÉPOCA. - Vol. XIX.2010, 2, p. 213-230
Subject:	microenterprises \| costs \| increasing returns and economies of scale

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Extent:	application/pdf
Type of publication:	Article
Language:	Spanish
Classification:	D21 - Firm Behavior ; Y - Miscellaneous Categories ; D24 - Production; Capital and Total Factor Productivity; Capacity
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008490286